Low-sulphur Bunker Price Tracker

We’ve introduced a simple, clear indexing mechanism to help determine changes in the BAF charges during the lifetime of a contract.

Our new low-sulphur bunker price tracker is intended to standardise, clarify and simplify the adjustment of Bunker Adjustment Factors (BAFs) between shippers and carriers or forwarders. By streamlining the process and agreeing common bunker price measurement periods, BAF adjustment periods, fuel prices and index formulae, we hope to bring much needed clarity to challenges the regulatory change presents.

Need help preparing the fuel clause in your 2019 contract?

As we begin the countdown to the 2020 regulatory deadline, we identify some of the issues worth closer scrutiny and offers tips to help you improve fuel clauses in 2019 contracts. For assistance with designing your own fuel charge programme contact us at verifiedfuelcharge@drewry.co.uk

Drewry's IMO 2020 Survey exposes uncertainty and unease among BCOs

A Drewry survey of global shippers and freight forwarders completed in Sept 2018 found that three quarters of respondents had yet to receive information from their carriers on how they planned to recover the fuel cost increases widely anticipated to accompany the regulatory change. More worryingly, over half of respondents did not consider their service providers’ existing approaches as either fair or transparent.

Call for greater transparency

The need for clear understanding and transparency cut to the very heart of the matter. In responding to the concerns of shippers, we have developed a new range of fuel cost verification services alongside our freight procurement and cost benchmarking products to help medium and larger BCOs better understand their fuel cost exposure and mitigate future cost increases.

Verify your future fuel costs

In cooperation with both shipper members of the Drewry Benchmarking Club, and other parties, we have now developed an IMO low-sulphur rule "Cost Impact Calculator" based on robust market data and benchmarked BAF charges, looking at fuel cost differentials between loops and between carriers.

Drewry is currently working with other shipper groups to obtain more information on current versus the likely post-IMO fuel consumption mix. Detailed fuel data and BAF policy information has already been sourced from several carriers to incorporate in these new models.

Areas of Expertise

Recent News

The level of satisfaction concerning container carriers among exporters, importers, and freight forwarders falls marginally, according to the third annual shipper satisfaction survey of Drewry and the European Shippers’ Council (ESC).

Recent Projects

Mastercard wanted to evaluate the readiness of the container freight industry to adopt a value proposition for procure-to-pay automation that would incorporate core Mastercard benefits such as payment guarantees.